Gold Holds Steady at $3,300 – Is the Rebound Just Beginning?Hello dear traders,
Today, OANDA:XAUUSD is finally showing signs of stability. The metal has successfully rejected a critical support level, an area that has historically attracted strong buying interest. This level is closely tied to the psychological $3,300 mark and continues to serve as a pivotal technical zone for market participants.
Recent price action confirms bullish interest with strong rejection candlesticks featuring long lower wicks followed by bullish follow-through. The support zone remains intact and buyers have stepped in, initiating an upward move.
Now that the price has bounced from this level, the probability of a continued bullish move increases. If momentum persists, gold could rise toward the $3,340 level, a reasonable short-term target based on past structure and minor resistance.
However, failure to hold above $3,300 or a sudden shift in market sentiment could still pose downside risks. A confirmed breakdown below the white support zone would invalidate the bullish setup and potentially open the door to deeper corrections.
Earlier on Wednesday, gold attracted dip buyers once again as it retested the $3,300 level. The overnight rebound in the U.S. dollar lost steam amid ongoing concerns about U.S. fiscal stability and rising bets on Fed rate cuts. Both of these factors tend to support non-yielding gold. Additionally, geopolitical tensions between Russia and Ukraine continue to boost safe-haven demand.
Always remember to confirm your setups and use proper risk management.
